$5.2M Settlement For ING Retirement Plan Clients
|Federal Information & News Dispatch, Inc.|
EBSA News Release: [02/04/2013]
Phone Number: (202) 693-4668 or x6588
Release Number: 13-0071-NAT
The department alleged that ILIAC's failure to disclose its policy on reconciling transaction processing errors to retirement plan clients was a violation of the Employee Retirement Income Security Act.
Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi said, "This settlement is reflective of my agency's commitment to enforcing requirements for transparency in the retirement savings marketplace. Failure of a plan fiduciary to disclose the revenue it received from managing retirement plans is a disservice to employers who are providing this benefit to their workers."
The agreement announced today also requires ILIAC to disclose its policy on how it corrects transaction processing errors to plan clients covered by ERISA and to adopt procedures for terminating abandoned plans through the
The settlement agreement requires that ILIAC make full disclosure of its transactions policy to its current and prospective ERISA plan clients in writing. Current plan clients will be given the opportunity to object to the policy within 30 days of receipt of notice. Prospective plan clients will be informed of the policy by way of its incorporation in ILIAC's contracts and service agreements. The disclosure also will state that ILIAC will track the effect of the corrections for each affected plan on an annual basis and will make that information available to its ERISA plan clients. ILIAC will acknowledge in the disclosure that any gains it keeps as a result of the policy constitute additional compensation for the services the company provides and it will report such compensation in accordance with ERISA Section 408(b)(2).
According to the settlement, ILIAC also will ensure that any plans deemed to have been abandoned will be properly terminated. It will attempt to contact the sponsor of each such plan, and if its efforts are unsuccessful, ILIAC agrees to become that plan's qualified termination administrator.
ILIAC is an insurance company with approximately 35,000 ERISA-covered plan clients. It has offices in
The settlement was the result of an investigation conducted by EBSA's
For information on the Abandoned Plan Program, visit EBSA's compliance assistance Web page at http://www.dol.gov/ebsa/compliance_assistance.html#section9.
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